The Mortgage Process – STEP 1: Organizing Your Mortgage Documents
The Most Critical Step to Hassle Free Mortgage Financing!

STEP 1: Organizing Your Mortgage Documents The Most Critical Step to Hassle Free Mortgage Financing!

Without accurate and thorough document review in advance of issuing a mortgage approval your mortgage approval is not worth the paper it is written on. The US subprime crisis quite literally erased hundreds of billions of dollars from global capital markets and subsequently forever changed mortgage lending throughout the western world. Mortgage lending today is scrutinized at a new level and so are the documents required to obtain mortgage loans.

Mortgage Process

The good news is that in the over $2.5 billion dollars of mortgages our team has funded, we have never had a mortgage not fund when clients follow our process. Depending on the type of mortgage you’re applying for and whether you’re an employee of a company or an entrepreneur (business-for-self (BFS) or self-employed). Please keep in mind that for mortgages purposes medical professionals, partners at law firms, and people who own 20% or more of a corporation are generally deemed to be self-employed. Individuals who derive a significant portion of their income from an investment portfolio or trust are often also required to provide supplementary documentation. Please also keep in mind that senior executives and people who have a personal taxable income in excess of $500,000 per year are most often subject to the same income review that business owners face.

Depending on the type of mortgage transaction and how you earn your income, you will need to organize and prepare a slightly different set of documents. Some are these documents are required prior to lenders issuing an approval and some are simply required prior to completing your mortgage file with the lender. Documents required will depend on which of the following categories you fall into:

  • Mortgage for Residential Purchase
  • Residential Mortgage Refinance
  • Full Mortgage Pre-Approval
    (the real type you can rely on where income, assets, and liabilities have been confirmed in writing)

***Required at Time of Application


Income Verification for Employees


  • Most recent Pay Stub – dated within 60 days
  • Letter of Employment – dated within 60 days

If income is hourly or highly variable (ex. Investment Bankers, Partners at Accounting/Law/Consulting Firms, Medical Professionals, Sales Executives, etc.) lenders may also require the following:

  • Past two years of T4 slips and/or Notices of Assessment (NOAs) may be required

Income Verification for Executives / Self-Employed


Lenders will require:

  • Personal Tax Return (Complete T1 Generals) – for 2 most recent tax years
  • Notices of Assessment (NOAs) – for 2 most recent tax years and confirming no income taxes owing

Mortgage for Residential Purchase (4 units or fewer)


Depending on your situation and the individual lender any of the following may be required:

  • Agreement of Purchase & Sale – including all schedules for subject property and fully signed and initialed by all partiess
  • MLS Listing – for the subject property provided by Realtor (for new build lender will want to see floor plans / specs)
  • Confirmation of Down Payment – depending on individual lender/insurer policies, you may be required to provide one or more of the following items:
    1. 90 Days of Bank Statements
  • Investment Statements – for RRSPs, stocks, etc. with the same proof of account ownership requirements
  • Gift Letter – if funds are gifted
    1. Lawyer’s Name & Contact Info
    2. Valid ID- required for each borrower:
      1. 1 piece of government issued photo ID (i.e. Driver’s Licence, Passport, Citizenship Card)
      2. 1 additional piece of ID (i.e. Birth Cert, SIN Card, Credit Card)
    3. VOID Cheque - for the account you wish to use for mortgage payments

Mortgage for Residential Refinance


Depending on your situation and the individual lender any of the following may be required:

  • Property Tax Bill – for most recent year confirming annual tax amount and showing account is in good standing
  • Original Purchase Price & Date
    1. Valid ID - required for each borrower and must include both sides of:
      1. 1 piece of government issued photo ID (i.e. Driver’s Licence, Passport, Citizenship Card)
      2. 1 additional piece of ID (i.e. Birth Cert, SIN Card, Credit Card)
    2. VOID Cheque - for the account you wish to use for mortgage payments

Additional Documents

In some cases additional documents may be required. Here are a few common scenarios:


When you own real estate investment rentals:


  • Real Estate Investor Worksheet with all items 100% accurately completed and confirmed to be current (our office will provide this for you at the time of application or initial call)

You are separated or divorced:

  • Separation agreement must be signed, include all pages, and confirm amount of spousal and/or child support payments to be paid or received

The #1 way to ensure a hassle free mortgage financing experience is to return all documents promptly and complete your mortgage file within 5 business days of approval!

When seeking to borrow hundreds of thousands of dollars, there is simply no way around the need to provide full supporting documents to lenders. After your “Mortgage Application” and “Client Intake Package” are completed you will be set up with your own secure online borrower portal which is used to submit all documents required throughout the process.

We look forward to serving you!

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